Unjust Enrichment and Unlawful Dividends: A Step Too Far?

Publication Type

Journal Article

Publication Date

2005

Abstract

Until recently, it was widely accepted that a recipient of company distributions such as dividends paid in breach of the requirements of the Companies Act 1985 (the Act) could only be made to repay such distributions if he knew of the illegality. Whether one looked to the Act (to wit, section 277) or beyond (to the knowing receipt-type liability encountered in Precision Dippings Ltd. v. Precision Dippings Marketing Ltd.), liability required knowledge. In Bairstow v. Queen’s Moat House plc, however, there appears to be the faintest of suggestions that this position may be open for re-examination. This is reinforced by Lord Nicholls’ recent speech in Criterion Properties Plc v. Stratford UK Properties LLC.

Discipline

Contracts

Publication

Cambridge Law Journal

Volume

64

Issue

1

First Page

177

Last Page

211

ISSN

0008-1973

Identifier

10.1017/s0008197305006835

Publisher

Cambridge University Law Society

Additional URL

http://dx.doi.org/10.1017/s0008197305006835

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